Let's take an in depth look at the Reno-Sparks housing market activity, comparing Single Family Home sales in July to August 2016, and comparing year over year activity to August 2015.
According to the Reno Sparks Association of Realtors, the Median Sold Price for single family homes in the Reno/Sparks area decreased 2.8% from $319,000 in July to $310,000 in August. When we compare this to a year ago, there was a healthy 6.9% increase, validating a strong market locally. While the year over year increases are beginning to impact affordability in the lower price ranges, it is important to note the increases in value are being fueled mainly by sustainable economic growth and jobs in our region. 
The number of homes sold decreased for a second straight month; down to 569 units in August from 595 in July. However, there was an increase in sales of 8.4% when comparing year over year data. The decrease in both monthly unit sales is believed to be caused by our regional inventory shortage.
There were 781 new listings on the market in August, which was a 6% increase from July 2016, as well as a 9.7% increase compared to July 2015. Despite these increases, the current demand for homes continues to outpace the supply. We expect a strong seller’s market to remain in the affordable price ranges until more homes are offered for sale in the region.
As we look at the Inventory numbers, there were 2,230 homes available for sale at the end of August, which was a 3.5% decrease from July. Although there was an increase of 2.7% year over year, the difference is only 58 listings.
All this information allows us to calculate the Months Supply of Inventory, which remains historically low in the most active price ranges below $600,000. Overall, there was a 3.9 months supply of inventory in August, which is less than a 1% increase from July, but still about half of what is needed for a balanced market. The year over year inventory comparison was down from 4.1 months in August 2015 to 3.9 months in August 2016. The National Association of REALTORS considers 5 to 6 months of inventory to be a balanced housing market, where neither buyers nor sellers have a distinct advantage.
What does all this information mean to you, and why should it matter if you are a home buyer or seller? The lack of inventory and our region’s economic growth will continue to drive home prices higher. Low mortgage rates will also contribute to a steady stream of home buyers. As prices increase, concerns of affordability continue to make headlines. If you are thinking about buying, now is the time to get pre-qualified for a mortgage and start your home search.
Whether you are buying or selling, talk to a Dickson Realty neighborhood expert first. Dickson Realty agents have the best tools, training and leading technology to stay in tune with the market.
Trust the experts at Dickson Realty to get you the information you need, when you need it. We are ranked the number one real estate company in the Reno, Sparks, Lake Tahoe market, and we’ve been assisting buyers and sellers in northern Nevada for over 40 years.
